
Breakfast News: SBUX Eyes 2026 Revival
July 30, 2025
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Source: Image created by Jester AI.
1. Starbucks Pops 4% Despite Sales Drop
Starbucks (SBUX -0.24%) moved higher in pre-market trading after Q3 revenue came in better than expected. Same-store sales fell for the sixth quarter in a row, but less than feared at 2%. CEO Brian Niccol warned we probably won't see real success until 2026.
- Recommended in Stock Advisor earlier this month: Starbucks will close or convert no-seating pickup-only outlets -- only around 90 in the U.S. -- saying they "lack warmth." Of the 1,000 U.S. stores marked for revamp by next year, some will replace seats previously removed.
- "Pricing will be a part of our business model": Niccol said he wants pricing changes used as little as possible, prioritizing "welcoming coffeehouses, and the human connection."
2. MSFT, META to Conclude Mag 7 Earnings
Microsoft (MSFT 0.10%) will post fourth-quarter earnings after the closing bell, along with a Q2 update from Meta Platforms (META -0.80%). Focus will be on AI growth, with both investing heavily this year.
- "Next phase of monetization on the AI front": Wedbush says Microsoft's Azure platform – developed in partnership with OpenAI – could help the stock to $600 (from $512.5 today). Azure and related cloud services revenue climbed 33% last quarter.
- "30% more advertisers are using AI creative tools": Meta CEO Mark Zuckerberg said AI-based advertising was already producing results as Q1 revenue and earnings climbed, and last week announced "hundreds of billions of dollars" spend on new multi-gigawatt data centers.
3. Novo Nordisk: What We Think Now
Emily Flippen
Novo Nordisk (NVO -7.21%) shares sank almost 22% yesterday after management updated guidance for the full year, lowering both sales and operating margin expectations, in large part due to increased competition for its GLP-1-based weight loss medication in the United States.
- The Stock Advisor team is not encouraging members to sell shares today: Despite these headwinds and operational missteps, Novo Nordisk remains an active buy recommendation on the scorecard.
- What the team is watching to ensure the investment thesis remains intact: Compounding litigation, expanding partnerships and DTC offerings, plus development of oral formulations.
4. Acquisition Rumors Drive Market Moves
The Wall Street Journal reports Rule Breakers recommendation Palo Alto Networks (PANW -5.56%) could finalize a deal to acquire cybersecurity specialist CyberArk (CYBR 0.15%) as early as this week, in its bid to strengthen defense against AI threats. Palo Alto is down 5% pre-market, with CyberArk up 13%.
- Moneyball Superscore of 57: Takeover speculation has spread to Okta (OKTA 0.82%), up a couple of percent since a Betaville "Uncooked" alert yesterday claimed a larger tech rival is planning an approach.
- Business travel merger back on: The Department of Justice, meanwhile, will not block a bid from Global Business Travel Group (GBTG 0.15%) for CWT. It had tried to stop the deal before President Trump took office, fearing it would eliminate competition.
5. Your Take
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